Analysis of Global Investment Trust

Current Price on 28th Dec 2018 = $0.106

• Yield = 9.43%  
• Price-to-book Ratio = 0.526
• Assets per unit = $0.204
• Debt per unit = $0.003 (including current liabilities)
• Gearing = 1.3%
• Secured NAV = $0.201 (189% of trading price)

It has been a while since I blogged so I am trying to do catch up now. Here is an analysis of Global Investment Trust, one of my key investments (about 600,000 shares)

Global Investment Limited is yielding 9.43% which is high despite them cutting dividend to one cent per year. This is probably due to the recent drop in price which makes it attractive. Moreover, its price-to-book ratio is 0.526 which is almost about half price compared to their NAV. They have no debts so their assets are fully secured.

I have been looking at trying to see why their price dropped. And it is probably due to their investments in China Domestic Bonds this year which the market view negatively. They are rated AAA by their domestic rating agencies which means it is highly unlikely that it will default. The problem is reputation which the market questioned.

I have about 600,000 shares in this, giving me a decent yield and with such statistics which we have not seen in the recent years, there is a chance that I sell some of my other holdings to buy into this.